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y Mike Ramsey and Christopher Scinta
April 29 (Bloomberg) -- President Barack Obama aims to announce tomorrow that Chrysler LLC will be placed into Chapter 11 bankruptcy, leading to an alliance with Italian automaker Fiat SpA, people involved in the matter said.
Administration officials are still resolving outstanding issues, and the plan isn’t finished, said one of the people, who declined to be named because discussions are private.
As part of negotiations, the U.S. Treasury raised its offer to Chrysler’s lenders to $2.25 billion in cash to forgive $6.9 billion in secured debt,
Chrysler seeks $5 billion, in addition to $4 billion already received.
Their viability plans, submitted to meet a deadline imposed by the Treasury, sketched a progress report on steep cost cuts and restructuring plans that the companies said would put them on a path back to profitability.
It won’t be easy. Before they win new government backing, they need to convince an Obama administration task force on the auto industry that their plans are realistic.